The Buy-side: Investment Thesis

Always have an investment thesis. It is imperative to have a well thought out position on why a particular acquisition or investment is warranted. A thesis (or strategic rationale) lays the ground work for discussion, when evaluating a deal with peers, other investors, or one's committee (to approve a deal). This applies to both private equity investors and corporate acquirers. You'll be amazed by how a deal can go awry, regardless of the countless hours of preparation, when one's board or investment committee begins to focus on the merits of a deal. This is the 1st topic of a deal discussion...."why do we want to do this deal".

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